Correlation Between China Life and Blue Sail
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Life Insurance and Blue Sail Medical, you can compare the effects of market volatilities on China Life and Blue Sail and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in China Life with a short position of Blue Sail. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Life and Blue Sail.
Diversification Opportunities for China Life and Blue Sail
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Blue is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding China Life Insurance and Blue Sail Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Sail Medical and China Life is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on China Life Insurance are associated (or correlated) with Blue Sail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Sail Medical has no effect on the direction of China Life i.e., China Life and Blue Sail go up and down completely randomly.
Pair Corralation between China Life and Blue Sail
Assuming the 90 days trading horizon China Life Insurance is expected to generate 1.11 times more return on investment than Blue Sail. However, China Life is 1.11 times more volatile than Blue Sail Medical. It trades about 0.02 of its potential returns per unit of risk. Blue Sail Medical is currently generating about -0.04 per unit of risk. If you would invest 3,657 in China Life Insurance on August 26, 2024 and sell it today you would earn a total of 520.00 from holding China Life Insurance or generate 14.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Life Insurance vs. Blue Sail Medical
Performance |
| Timeline |
| China Life Insurance |
| Blue Sail Medical |
China Life and Blue Sail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Life and Blue Sail
The main advantage of trading using opposite China Life and Blue Sail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Life position performs unexpectedly, Blue Sail can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Blue Sail will offset losses from the drop in Blue Sail's long position.| China Life vs. Ming Yang Smart | China Life vs. 159681 | China Life vs. 159005 | China Life vs. Loctek Ergonomic Technology |
| Blue Sail vs. Bank of China | Blue Sail vs. Kweichow Moutai Co | Blue Sail vs. PetroChina Co Ltd | Blue Sail vs. Bank of Communications |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Stocks Directory Find actively traded stocks across global markets |